Ford Halts China Exports as US-China Tariff War Hits Hard

 Ford Motor Company halted all vehicle exports to China on April 17, 2025, in response to escalating US-China trade tensions, driven by President Donald Trump’s 125% tariffs on Chinese imports and China’s retaliatory 84% levies on US goods.

Ford, which exported 25,000 vehicles annually to China, primarily F-150 trucks and Lincoln SUVs, cited “unsustainable” costs as the reason for the suspension. The decision follows Trump’s April 10 tariff hike from 104% to 125%, aimed at curbing Chinese imports, and China’s counter-tariffs, which have crippled US automakers’ competitiveness in the world’s largest auto market.

Ford’s CEO, Jim Farley, told analysts that the tariffs wipe out profit margins on exports, with each vehicle facing an additional $15,000 in duties. The company, which operates three joint-venture plants in China producing 600,000 vehicles yearly, will now focus on local production to serve Chinese consumers, avoiding import taxes.

However, Farley warned that China’s restrictions on US firms, including export controls on semiconductors, could disrupt Ford’s supply chain, potentially costing $2 billion annually. The move comes amid a broader industry shake-up, with Stellantis and Hyundai offering discounts to clear US inventory, per CNBC.